Mumbai: Indian gold futures rose to near all-time highs tracking firm overseas markets where concerns over the US economy continued to attract more investors to the safe-haven appeal of gold.
“The market is getting full support from the firm overseas markets...it is likely to touch new all-time high during the day,” said Pranith Kumar Tunguri, senior analyst, Indiabulls Commodities Pvt Ltd.
On the Multi Commodity Exchange of India Ltd (MCX), the near-month contract hit an all-time high of Rs11,492 per 10 grams on Monday. The contract has risen more than 7% so far in 2008.
Overseas gold rose on Tuesday and held near an historic high of $914 an ounce, hit the previous day, reflecting investor interest in the metal as the dollar dropped on expectations of a half-percentage-point cut in US rates.
Traders would be keenly watching macro-economic reports on retail sales and producer prices for further cues into the markets, said Debjyoti Chatterjee of MAPE ADMISI Commodity Research.
Open interest for February gold on MCX was at 14,391 lots, up from 14,249 the previous session. Volume on Monday was 64.1 kg.